Nokia’s Bright Future!

Last week was a bad one for Nokia. Even though it was clear Nokia wouldn’t have a pretty quarterly result, many had believed that Nokia had bottomed out already. Well, that wasn’t the case. The transition to Windows Phone while production and even new launches of Symbian^3 devices are still in full swing are taking it’s toll.

In any case here is why I believe Nokia has a very bright future ahead of it:

1. Microsoft

Microsoft just can’t afford to have Windows Phone not succeed at any cost. While already being late to the party on tablets and losing the battles on browsers as well, Microsoft can’t afford to be a niche player in the mobile OS market. Therefore Windows Phone must succeed and for it to succeed Windows Phone needs Nokia.

2. Hardware

There is no denying that Nokia builds some of the best hardware and industrial design only matched by Apple. The Nokia Lumia 800 and 900 are cutting edge industrial design that is functional, durable and fashionable at the same time.

3. Innovation

The Nokia 808 Pureview is a prime example that Nokia still got what it takes to innovate. Seemingly most of the R&D must have gone into hardware (and somewhat services with Nokia Drive/Transport/Maps) to the detriment of OS development. The Nokia 808 would be an absolute killer device and bestseller if it would run Android or at least would have launched with Windows Phone. But the hardware development seems to be too far ahead for it’s time, at least for Windows Phone.

4. Services

The services based on NavTeq are cutting edge as well. Drive, Transport and Maps are excellent services that neither Android nor iOS can compete with. Nokia Life Tools is a very unique offering for the developing world demonstrating once more that Nokia has the ability to listen, research and innovate.

It seems that Nokia has bottomed out. Maybe there is one more quarter with poor results to come but that then should have a positive outlook for the following quarter. As far as I am concerned I have stocked up on NOK shares when they dropped below $4.

PP

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